European natural gas prices declined for a third session amid lackluster demand, even as uncertainty remains about the full restart of LNG terminals in France.
(Bloomberg) — European natural gas prices declined for a third session amid lackluster demand, even as uncertainty remains about the full restart of LNG terminals in France.
Dutch front-month futures fell 0.9% to €44.17 a megawatt-hour after slumping 13% during the previous two sessions. The UK equivalent also edged lower.
European gas stockpiles are well-above seasonal levels following a mild winter, despite much of the continent experiencing a relatively cool spring. Still, the region is recovering from a historic energy crisis, with many consumers limiting their use over recent months.
“Demand has not recovered despite the partial price normalization,” analysts at Morgan Stanley said in a note Wednesday. It may take a while to rebound due to structural demand destruction and the lag between wholesale power prices and retail tariffs for end-consumers.
Meanwhile, a cloud of uncertainty surrounds French liquefied natural gas terminals — affected by strikes for most of March — and it’s not clear when they’ll resume full operations.
The Montoir terminal made first send-outs on Wednesday, according to the data from operator Elengy. Still, a tanker that was due to unload there on Wednesday, hasn’t docked yet and appears to be diverting to the UK, ship-tracking data on Bloomberg show. Dunkerque LNG, has limited capacity today due to a strike.
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